sweetiesmom09
Junior Member
What is the name of your state?PA
In my current HO renewal for mid-July, my HO insurance company has changed my Loss of Use coverage from "Actual Loss Sustained to 30% of my dwelling coverage. I spoke with my agent and he informed me this is a company-wide change. I have had this policy, along with auto coverage from the same company, for 4 years now, and otherwise am happy with the company. I'm claim free so I cannot speak to that aspect, but my rates have been stable and the agent I have is responsive and easy to deal with.
I looked at several online quotes to see whether I can get another policy for a reasonable rate that will give me the Actual Loss Sustained for Loss of Use. I only found one company that seems to still offer this coverage (although I did not call the several companies that don't provide online quotes). In addition to still offering actual loss coverage for Loss of Use, the coverage was a bit higher on the dwelling and the rates are a bit lower. However, I am hesitant to change because I was insured with this company for 5 years before I had my current policy and my experience is that they tend to offer very low rates and then raise them substantially after the first two years. When I had them before, my rates increased at least 15% each year I was insured by them. But even more than that, I'm concerned that it seems like this percentage based coverage for loss of use is the trend for companies and if so, there is a possibility that the same change will be made in the new policy in the near future.
My question therefore is exactly that - based on your experience in the insurance industry, does it seem like I would be correct in suspecting it's likely the company currently quoting actual loss sustained for loss of use probably isn't far behind in changing to the percentage coverage too? My instinct is to stay with my current company but I don't want to make the wrong decision.
Thank you for any insights you may provide.
In my current HO renewal for mid-July, my HO insurance company has changed my Loss of Use coverage from "Actual Loss Sustained to 30% of my dwelling coverage. I spoke with my agent and he informed me this is a company-wide change. I have had this policy, along with auto coverage from the same company, for 4 years now, and otherwise am happy with the company. I'm claim free so I cannot speak to that aspect, but my rates have been stable and the agent I have is responsive and easy to deal with.
I looked at several online quotes to see whether I can get another policy for a reasonable rate that will give me the Actual Loss Sustained for Loss of Use. I only found one company that seems to still offer this coverage (although I did not call the several companies that don't provide online quotes). In addition to still offering actual loss coverage for Loss of Use, the coverage was a bit higher on the dwelling and the rates are a bit lower. However, I am hesitant to change because I was insured with this company for 5 years before I had my current policy and my experience is that they tend to offer very low rates and then raise them substantially after the first two years. When I had them before, my rates increased at least 15% each year I was insured by them. But even more than that, I'm concerned that it seems like this percentage based coverage for loss of use is the trend for companies and if so, there is a possibility that the same change will be made in the new policy in the near future.
My question therefore is exactly that - based on your experience in the insurance industry, does it seem like I would be correct in suspecting it's likely the company currently quoting actual loss sustained for loss of use probably isn't far behind in changing to the percentage coverage too? My instinct is to stay with my current company but I don't want to make the wrong decision.
Thank you for any insights you may provide.